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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Joe NYC who wrote (66573)	10/14/1998 10:04:00 AM
From: Elmer	Respond to of 186894

Re: "If you shift your costs from paying employees salary to paying them stock options, you eventually have to buy stock when the employees redeem their option for stock. The only problem is that you have to buy stock at market prices, while employees pay peanuts, resulting in expenditures like the $1.7 billion you saw this quarter. But hopefully, Intel bought more shares than needed to cover the option liability." Most companies grant options at fair market value on the date of the grant. For Intel employees that wouldn't be peanuts. Intel is selling those options, not giving them away. As for buying them back, companies such as Intel can write a lot of puts to discount the buyback price. EP